Let's Make Cause Marketing Donations Tax Deductible

If you go to a charity gala in the United States the price of the tickets is tax deductible after the cost of the meal and other benefits is subtracted. If you donate used household items or a used car to a 501(c)(3), you get a tax receipt from the charity equal to the fair market value of the donation. Donations of bonds or stock or art or gold or real property are all likewise tax deductible.

But currently cause marketing donations are not tax deductible.

The paper icon at the left benefiting my state's Special Olympics chapter from a local grocery chain made my wonder… again… why Americans can’t get a tax deduction for charitable donations generated through cause marketing efforts?

When you buy the paper icon… available in $1, $3 and $5 versions… the clerk tears off the bottom portion, scans it, and hands it back to you to sign. After you’ve done so, you keep the top portion and bottom half gets displayed in the store, a chain called Harmons.

It would be a simple matter for the back of the top half of the icon to have a letter of deductibility from the charity with a facsimile signature from the executive officer.

Because the paper icon has no value, the deduction would be for the full amount.

I won’t argue that a $1 or a $3 or even a $5 deduction will change the amount that Americans give to charity or increase the likelihood that they’ll give. I doubt it would.

But over the years I’ve see a lot of cause marketing donations that have been for $50 or $150, even $300 and more. That’s real money and it deserves to be treated the same as any other charitable donation.

What do you think? Should cause marketing donations be tax deductible?

Comments

Part 2: How Chili's Used Cause-Related Marketing to Raise $8.2 million for St. Jude

[Bloggers Note: In this second half of this post I discuss the nuts and bolts of how Chili's motivates support from its employees and managers and how St. Jude 'activates' support from Chili's. Read the first half here.] How does St. Jude motivate support from Chili’s front line employees and management alike? They call it ‘activation’ and they do so by the following: They share stories of St. Jude patients who were sick and got better thanks to the services they received at the hospital. Two stories in particular are personal for Chili’s staff. A Chili’s bartender in El Dorado Hills, California named Jeff Eagles has a younger brother who was treated at St. Jude. In both 2005 and 2006 Eagles was the campaign’s biggest individual fundraiser. John Griffin, a manager at the Chili’s in Conway, Arkansas had an infant daughter who was treated for retinoblastoma at St. Jude. They drew on the support Doug Brooks… the president and CEO of Brinker International, Chili’s parent co...

Chili’s and St. Jude Children’s Research Hospital

I was in Chili’s today and I ordered their “Triple-Dipper,” a three appetizer combo. While I waited for the food, I noticed another kind of combo. Chili’s is doing a full-featured cause-related marketing campaign for St. Jude Children’s Research Hospital. There was a four-sided laminated table tent outlining the campaign on the table. When the waitress brought the drinks she slapped down Chili’s trademark square paper beverage coasters and on them was a call to action for an element of the campaign called ‘Create-A-Pepper,’ a kind of paper icon campaign. The wait staff was all attired in black shirts co-branded with Chili’s and St. Jude. The Create-A-Pepper paper icon could be found in a stack behind the hostess area. The Peppers are outlines of Chili’s iconic logo meant to be colored. I paid $1 for mine, but they would have taken $5, $10, or more. The crayons, too, were co-branded with the ‘Create-A-Pepper’ and St. Jude’s logos. There’s also creatapepper.com, a microsite, but again wi...

Cause-Related Marketing with Customer Receipts

Walgreens and JDRF Right now at Walgreens…the giant pharmacy and retail store chain with more than 5,800 stores in the United States and Puerto Rico… they’re selling $1 paper icons for the Juvenile Diabetes Research Foundation (JDRF). This is an annual campaign and I bought one to gauge how it’s changed over the years. (Short list… they don’t do the shoe as a die cut anymore; the paper icon is now an 8¾ x 4¼ rectangle. Another interesting change; one side is now in Spanish). The icon has a bar code and Jacob, the clerk, scanned it and handed me a receipt as we finished the transaction. At the bottom was an 800-number keyed to a customer satisfaction survey. Dial the number, answer some questions and you’re entered into a drawing for $10,000 between now and the end of September 2007. I don’t know what their response rate is, but the $10,000 amount suggests that it’s pretty low. Taco Bell’s survey gives out $1,000 per week. At a regional seafood restaurant they give me a code that garner...

Cause Marketing

Search This Blog